The cap rates on multifamily properties are very low compared with historical rates, so therefore, as you
Fantastic news! We've Found the answer you've been seeking!
Question:
a. Calculate that break-even cap rate.
b. You would like to have a pension fund buy the property upon stabilization and you know that the anticipated growth of the NOI would be 2%/annum. In considering which potential funds might be interested, what would be the maximum hurdle rate they would have to be interested in your project?
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
Posted Date: